Trump’s Proposed Tariffs on Mexico Would Be Biggest Tax Hike in Almost 30 Years: Report
This information comes from the right-leaning Tax Foundation.
The 5 percent tariff on Mexican goods is set to take effect June 10 and steadily increase until it reaches 25 percent “unless and until Mexico substantially stops the illegal inflow of aliens coming through its territory,” according to a statement from the White House Thursday.
Existing tariffs in place against Mexico would increase revenues by $69 billion, or about 0.32 percent of gross domestic product (GDP), according to the right-leaning Tax Foundation. The 5 percent tariff would increase this figure to about 0.40 percent of GDP. Tax increases under then-President Bill Clinton in 1993 led to revenues of about 0.36 percent of GDP, according to the Tax Foundation.
“The Tax Foundation model estimates that if the Trump administration imposes additional tariffs on automobiles and parts, additional tariffs on products from China, and tariffs on products from Mexico, GDP would fall by an additional 0.50 percent ($124.82 billion), resulting in 0.33 percent lower wages and 387,041 fewer full-time equivalent jobs,” the foundation states.